Invictus Energy (ASX:IVZ) to raise AU$12.75M via placement for Mukuyu-2 well - Kalkine Media

Highlights

• Invictus Energy Limited (ASX:IVZ) has announced an institutional placement for a capital raise of AU$12.75 million.
• The proceeds from the placement would be used for the Phase 2 exploration and appraisal campaign in Zimbabwe’s Cabora Bassa Basin.
• Total AU$35.4 million have been raised by IVZ via the recently completed SPP and its private placement in April.

In the latest announcement, Invictus Energy Limited (ASX:IVZ) has updated about an institutional placement for a capital raise of AU$12.75 million at an issue price of AU$0.12 per share.

The funds raised are planned to be directed towards funding the company’s development activities across Zimbabwe’s Cabora Bassa Basin (one of the last untested large frontier rift basins in onshore Africa).

According to the ASX-listed independent upstream oil & gas company, the upcoming Phase 2 exploration and appraisal program at the Basin holds the potential to provide future energy security to Zimbabwe.

Details of the placement

Under the private placement, the company has been assured of strong commitments for AU$12.75 million (before costs) from institutional and sophisticated investors.

As per the terms of the placement, an amount of AU$9.75 million will be placed under IVZ’s current remaining placement capacity pursuant to ASX Listing Rule’s 7.1and 7.1A. An additional AU$3 million will be subject to shareholder approval of the refreshment of the firm’s placement capacity at the Extraordinary General Meeting (EGM) to be held during this month.

Under the placement, 106.25 million ordinary shares (new fully paid) are planned to be issued at AU$0.12 apiece. Also, every placement participant will be entitled to one new listed option for every two shares subscribed. The options, which have a three-year term, are exercisable at AU$0.20.

Progress so far…

Invictus has reported the upsizing of the appraisal well data acquisition program to include additional tools for the evaluation and acquisition of open-hole wireline log data and fluid samples. The company is targeting a discovery that could position IVZ on a pathway to development, says Invictus.

According to the company, it is progressing well to spud Mukuyu-2 in Q3 CY2023.

Stock price information

IVZ shares were spotted trading at AU$0.127 at the time of writing on 06 June 2023. Invictus Energy has a market capitalisation of over AU$129 million.